European stocks rose sharply on Monday, driven by gains in auto and pharmaceutical shares, after the European Union secured a trade agreement with the United States, averting a potential trade war just days before the 1 August deadline. The pan-European STOXX 600 index gained 0.94 per cent by 8:21 a.m. GMT, with major national indices also advancing. Germany's DAX rose 0.42 per cent, France's CAC 40 climbed 0.77 per cent, Spain's IBEX 35 added 0.86 per cent, and the UK's FTSE 100 inched up 0.17 per cent. The euro strengthened broadly, rising against the US dollar, British pound, and Japanese yen following the announcement of the deal, which stabilised tariffs and removed duties on key goods. Oil prices also edged higher on the back of the agreement. Brent crude futures and US West Texas Intermediate (WTI) both increased by 0.5 per cent, supported by optimism around transatlantic economic cooperation. Meanwhile, gold prices dropped to their lowest in nearly two weeks, as appetite for safe-haven assets waned amid easing geopolitical and trade tensions. The deal means European exporters will face a 15 per cent US tariff—down from the previously threatened 30 per cent, but still higher than pre-April levels and above the 10 per cent rate granted to the UK. EU carmakers, in particular, will avoid the 25 per cent global tariff introduced earlier this year. "The EU was in a weak position, I'm afraid. It had no choice. Trump was not going to back down and it settled for 15 per cent, so it's a bad day for international trade, frankly. But it could have been worse," former EU trade negotiator John Clarke told the BBC. Attribution: Amwal Al Ghad English, Reuters, BBC Subediting: Y.Yasser
